Information relating to tax-exempt body entertainment should be recorded to enable the taxable value to be calculated. The following details should be collected:
- date of transaction
- total expenditure
- GST amount
- description of expenditure, for example, cakes, biscuits and soft drink for a staff party
- number of employees and employee's associates attending
- number of employees of associated entities and associates of such employees attending
- name and employee AGS/ID, number of entity employees and employees of associated entities who received recreation entertainment benefits
- number of other persons attending (other than employees and employee's associates).
For entities that use corporate credit cards, better practice is to require all food, drink and recreation activities to be purchased using a corporate credit card. The cardholder should be requested to provide details of the expenditure to FBT staff, including details of the nature of the function and who attended. This provides FBT staff with the information they require to calculate the tax-exempt body entertainment fringe benefit.
End of attention